Finance Minister Mathias Cormann says the government remains committed to its election promise not to reduce the capital gains discount and negative gearing for housing.
Labor insists the government can't deliver action on housing affordability in the May budget without tackling negative gearing and capital gains tax.
AAP understands extensive work has been done within Treasury on capital gains tax ahead of the May 9 budget, despite the government's election pledge.
House prices in Melbourne and Sydney have jumped more than 10 per cent over the year and the latest building data shows approvals for apartment blocks and townhouses (10.9 per cent) outstripping those for private sector houses (5.3 per cent) over the month.
Senator Cormann said the government would keep its commitments.
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"We promised in the lead-up to the last election we would not be abolishing negative gearing the way Labor suggested (and) that we would not be reducing the capital gains tax discount the way Labor was suggesting, and that remains our position," the minister told Sky News on Monday.
He also ruled out any plan to allow early dipping into superannuation to buy property, which he said would "make the problem worse".
"You don't improve the affordability of anything ... by boosting demand."
Shadow treasurer Chris Bowen said the government lacked a "proper plan" for housing affordability.
"A proper plan on housing affordability includes reforms to negative gearing and the capital gains tax discount - anything short of that on housing affordability is a sham."
The Reserve Bank is expected to keep the cash rate on hold when it meets on Tuesday.
However, economists will be scrutinising Reserve Bank governor Philip Lowe's comments on the housing market.
